Textile Domestic Demand Market Broke The "Off Season" Shackles, De Inventory To Boost Confidence

Recently, the international version of tiktok has become the focus of everyone's recent eyes. The United States has now begun to "oppose China" and fully politicize the issue of Commerce.

In fact, the international version of tok is not aimed at the international version. In recent years, there are ZTE and Huawei, and then there are enterprises on the list of American entities. As long as the United States thinks that this enterprise may pose a little possible threat to its global hegemony, or even if the United States thinks that it is profitable to sanction the company, it will use various reasons to add these enterprises to the "blacklist". In the early morning of July 21, the Bureau of industry and security of the U.S. Department of Commerce suddenly announced that 11 Chinese enterprises would be included in the "entity list", including Changji Yida textile, Hotan TEDA garment and Nanjing Xinyi cotton textile. On May 24, Huafu subsidiary, the world's largest color textile enterprise, was also included in the list.

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From the national level, the suppression of reciprocal countermeasures has never been interrupted: the United States raised taxes on China's manufacturing industry in the trade war, and China also increased taxes on American agricultural products; the United States closed the Chinese Consulate General in Houston, and China immediately closed the US Consulate General in Chengdu But the game between big countries is never a simple thing. From the micro perspective, textile enterprises also need to "find a new way".

Recently, the word "internal circulation" is quite popular.

In the economic community, there have been several rounds of discussions on internal circulation, but the impact is limited to the discussion, just brainstorming at the meeting. What made the word big fire was that on June 18, a big man made a written speech at the Lujiazui Forum: "we are still faced with great pressure of economic downturn, but the situation is gradually changing to a better direction. A new pattern of dual cycle development with domestic circulation as the main factor and international and domestic mutual promotion is forming."

Generally speaking, the external circulation corresponds to the export foreign trade market, and the internal circulation corresponds to the domestic demand consumption market.

Textile domestic demand market broke the "off season" shackles, de inventory to boost confidence

In the textile industry, during the 40 years of reform and opening up, the development of the textile industry has been export-oriented due to its high quality and low price. However, some countries led by the United States feel that China is selling too cheap, and their own textile industry can't afford it at all. Therefore, they are hostile to China, coupled with the impact of the epidemic, and the overseas market shrinks sharply. Therefore, some foreign trade orders can only be digested back to China, which is the so-called "economic internal circulation".

In fact, from last year's Sino US trade war to this year's new epidemic, some textile foreign trade enterprises have consciously shifted their focus from foreign trade to domestic trade.

Manager Wang, who is in charge of an elastic fabric weaving enterprise, said that in previous years, their orders were 80% of foreign trade and 20% of domestic trade. However, this year, due to the impact of Xinguan epidemic, foreign trade was depressed, and on the other hand, they consciously opened up new customers. Therefore, they gradually shifted their focus to domestic trade. At present, domestic trade has accounted for more than 70% of the total trade volume.

In late July, the textile market broke the shackles of the "off-season". Many textile owners said, "this wave of market has caught us off guard, and finally let us take some goods!"

According to the monitoring data, the transaction atmosphere of Jiangsu and Zhejiang markets has improved compared with the previous period, and most transactions are focused on autumn and winter fabrics. Both domestic and foreign trade markets have certain performance, especially the domestic market.

"From the end of the Dragon Boat Festival to last week, the market is really weak. Sometimes I sit in the sales department for an afternoon, and there won't be a call to purchase gray cloth," said Shen, who does the four side elastic fabric. "But this week is totally different. I have received calls for gray cloth in the early morning. Here it is 20000 meters, and there is 50000. Recently, the inventory in the warehouse has gone Bo, and some orders need to be ordered and queued. "

In addition to good elastic performance, other conventional autumn and winter fabric orders are better than in the early stage, such as Shumei silk and gallbladder cloth used for lining materials, warp knitted suede and plain cloth for sand release. In addition, medium and thick clothing fabrics also have certain performance, especially after special finishing process, which is used to make down jacket, cotton clothing and other fabrics, market proofing and sample performance Better.

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It can be seen that the market has indeed released a positive signal, whether it is the price of raw materials or orders issued in autumn and winter, at least the social inventory has been rising steadily in the early stage. In the interview and research of Xiaobian, the rise of grey fabric inventory of most weaving manufacturers began to slow down or the production and sales could be leveled off, and the inventory of a few manufacturers producing marketable products decreased slightly, which also boosted the confidence of market participants.

According to the traditional practice, June and July belong to the traditional off-season of textile, and the phenomenon of load reduction and accumulated inventory in the market is also relatively common.

The difference between this year and previous years is that some enterprises have experienced the state of "low demand and high load" in the second quarter, and their own inventory has accumulated to a high level in recent years, and the pressure of capital is greater. Therefore, in the middle of June, the operation of rotation and holiday in the market is accelerated. The load of main clusters in Jiangsu and Zhejiang has been hovering around 60%, and the lower one is about 40%.

In September, enterprises began to prepare for the small wave of the market.

According to the monitoring data, the water jet loom started to rise to about 70%, the warp knitting started at 70-80%, and the round knitting machine performed slightly worse, at about 40%. Compared with last week, it increased by 4% and there was no significant difference compared with the same period last year.

Foreign trade market: risks still exist, pay attention to the development of new markets

Today's environment is still deeply affected by the epidemic situation, and the textile industry is still faced with the dilemma of slow recovery of terminal consumption, especially the weak foreign trade market, and the number of foreign unemployment and bankrupt enterprises is still rising due to the poor economy. It can be said that the impact of the development of overseas epidemic on the economy, even the impact on the textile industry, has not decreased with the passage of time, in case of the autumn epidemic If the situation is repeated, it is easy for foreign trade economic activities to "pause" again. Can't we do foreign trade? Of course, we should not pay attention to the quantity of new orders but also the quantity of new orders.

In recent years, China has been initiating the belt and road initiative to cope with complex and profound changes in the world today. Countries along the belt and road are very good trade partners.

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In addition, the regional comprehensive economic partnership (RCEP) will be signed in 2020, which will establish a free trade agreement of 16 countries with a unified market by reducing tariff and non-tariff barriers. If it succeeds, it will cover 3.5 billion US dollars of the world's total population, which will be the largest in the world. Now, with the exception of India, the remaining 15 countries have concluded negotiations and started legal text review.

In particular, the textile markets in these countries, especially those in Japan, have been better controlled due to the fact that the epidemic situation has been restored in these countries.

After the U.S. President Trump's re-election, the risk of "one-sided trade" between China and the United States has become more and more obvious.

For textile enterprises, under the influence of the epidemic situation, on the one hand, they should grasp the orders in hand, on the other hand, they should not put eggs in a basket and turn part of their attention to the domestic market. In terms of foreign trade, they should also actively expand the markets of countries with relatively small political risks, and strive to be well prepared.